Study: Mobile gamers prefer DTC brands over retailers

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Brief:

About two-thirds (64%) of mobile gamers prefer to shop directly from a brand than through a third-party retailer, per a survey that mobile advertising and app monetization company Tapjoy shared with sister publication Mobile Marketer. More than 80% of mobile consumers subscribe to at least one clothing or lifestyle service, and 70% are interested in trying a new subscription product or service, its survey found.

In-app rewarded ads, which provide free game content in exchange for looking at a sponsored message, are more effective than ads on social media, the survey indicates. Almost two thirds (64%) of consumers said they're more likely to engage with an in-app rewarded ad than a social media sponsored post for retail advertisers.

Among millennials, 83% use one to four subscription services for clothing or lifestyle products, the survey found. Among Generation Z, 84% said they regularly shop for clothing or lifestyle products using a mobile device. Tapjoy surveyed more than 11,000 mobile users ages 18 or older who responded to in-app offerwall placements.

Insight:

Tapjoy's survey results highlight how direct-to-consumer (DTC) brands can reach younger and higher-income groups through in-game advertising. The study confirms other research indicating that audiences respond to rewarded advertising through their mobile devices. Rewarded video ads were the most popular ad category as deployment rates rose to 82% of games in 2019 from 65% a year earlier, per a study by game marketing firm deltaDNA. Audiences that are averse to other kinds of advertising want something in exchange for their attention, such as in-game rewards, making the format more valuable for mobile marketers, these studies suggest.

Millennial and Generation Z consumers are using their smartphones for shopping, including purchases from DTC brands. Ninety percent of millennials shop online because of its convenience, compared with 67% of Gen Z. Eighty-eight percent of millennials shop for clothing or lifestyle products using their mobile device, compared with 84% of Gen Z, Tapjoy's survey found. The findings indicate that DTC brands and retailers need to have a mobile presence to reach these shoppers.

Tapjoy also found that 73% of Gen Zers buy clothing or lifestyle products online or in-app one to four times a month, while 74% use one to four subscription services for those product categories, the survey found. Among millennials, 51% have shopped for clothing or lifestyle products in the past three months, and 63% said they prefer to shop directly from a brand. Millennials also are price-conscious, with 65% saying that affordability is a major factor in their decision to make a purchase, per Tapjoy. The findings highlight the changes in purchasing behaviors amid younger consumer groups.